Industry Analysis & Industry Trends
Although demand for truck rentals and leases waxed and waned, the industry received an overall net increase in demand over the five years to 2014. Increasing emissions and fuel-efficiency regulations are anticipated to drive demand from the commercial market going forward. Indeed, regulation aimed at lowering emissions from long-haul tractor-trailers and large pickup trucks by 23.0% by 2019 will require downstream customers to either purchase or lease new vehicles. IBISWorld expects that the majority of companies will lease their trucks from industry operators as downstream fleet operators seek more predictability and flexibility in their cost structures... purchase to read more
Industry Report - Industry Investment Chapter
The Truck Rental industry exhibits a high level of capital intensity. Using wages as a proxy for labour and depreciation as a proxy for capital, for every dollar spent on labour, operators are expected to spend $1.43 on capital in 2014. Industry firms must allocate significant funds toward truck and trailer purchases, accounting for this high level of capital intensity. Moreover, many firms offer maintenance services, necessitating the purchase of diagnostic equipment and a range of tools and spare parts.
Nevertheless, the industry does still have a significant labour component; wages are expected to account for 13.0% of revenue in 2014, with the average employee making $40,035 per year... purchase to read more